The Grenada gazette. (Grenada, Miss.) 1885-18??, 1887-02-26
TREASURY METHODS.

~A 49,
- TREASURY METHODS.
How the United States Government Puts
Its Money IN Circulation.
It is necessary, first of all, to UNDER
stand and fix firmly in the mind
fact, namely, that no money comes out
of the Treasury except to meet appro-
priations by Congress, or in exchange
for an equal sum of money of another
variety. Therefore, no matter how
much coined or paper money the Gov
eminent might manufacture, the
amount Of increase in circulation could
equal only the excess of the sum voted
by Congress to meet the expenditures
of the Government, over the revenues
received in payment of taxes. The
methods in which the various kinds Of
money get into circulation vary great
ly. The only way which is common to
them all is that of direct payment out
of the Treasury Or one of the sub.
treasures. Let us take the severa,
kinds OF money in their order.
First, gold coin. The owner OF
gold bullion or of foreign gold coin
may take it to any mint or assay office
and have it coined free of charge. II
there is Il supply Of gold coin on hand
and there always is-the value of the
deposit is at once ascertained. and the
depositor receives for it gold coin to
the full amount.
Second, silver dollars. The Govern.
ment pays two million dollars every
month for silver bullion to be made
into silver dollars, and it pays for this
bullion in silver dollars. Moreover,
any person wishing for silver dollars
can obtain them in any amount upon
depositing any other kind of legal
tender money, or silver certificates, at
a sub-treasury. The silver dollars, in
that case, will be delivered to him in
any part of the United States free Of
express charges.
Third, legal-tender notes. The issue
of legal-tender notes has been fixed for
about nine years past, and such notes
are to be had from the Government
which has but a small supply on hand
only as a matter of accommodation.
by exchange. at the sub-treasuries.
Forth, gold and silver certificates.
These certificates are to be had from
the Government upon a deposit of the
coin upon which they are respectively
based-gold certificates for gold coin,
silver certificates for silver dollars.
Formerly, in order to meet a peculiar
trade demand, silver certificates were
in request in exchange for gold coin,
but the treasury regulation which per-
mitted this exchange has been abro-
gated.
Fifth, small silver coins and minor
coins. The coins below the denomina-
ton of a dollar, of silver, nickel and
bronze, are transported free of charge
to any part of the United States, in ex-
change for any other kind of lawful
money, and will likewise be redeemed
in lawful money when presented at any
sub-treasury.
Sixth, national bank notes are fur.
nished to the banks, which issue and
redeem them.
In all these cases there are treasury
regulations prescribing the limits of
amount, the methods Of sending, and
other matters, to which those wishing
for any particular kind of money
must conform. But it will be seen
from this statement that within
those regulations one can get any kind
of money for any other kind. Sup
pose one starts with gold certificates.
For these he can get gold coin. BY de-
posting the gold coin he can get silver
dollars, and for these silver dollars,
silver certificates. These certificates
he deposits in some bank and receives
in return b%ank-notes. The bank, when
it is asked to do so, must redeem these
notes in coin or g%rcenbacks, and the
proceeds arc available for procuring
small silver. 1t is not quite so easy to
novel in the other direction, and obtain
gold coin for small silver, but it can be
done by a determined person.
Now we must repeat that all this is
merely an exchange of money, and in no
caseincreases the amountin circulation,
except, apparently and only apparently.
in the case of gold coin. Form that case,
although there is more money in circu-
lation bearing the stamp of the United
States, nothing has been added to its
value by receiving that stamp. 1t
would sell for just as much in bars,
dust, or foreign coin rs it will after be-
ing coined. Moreover, the Govern
ment has merely effected an exchange
of two things Of equal value.
Most of the money put in the circuls
ton reaches the public through thu
payment at the New York sub-Treasury:
ri. cob TvooSv,rV, 10 q momhor nf thu |